Investment Real Estate topics throughout California and sometimes further! Mario Pinedo has been a Realtor since 1991 in Silicon Valley and has sold throughout California and the West. His primary investment vehicle is multi-family rental properties. Mario focuses on major markets from San Diego, Orange County, Los Angeles, San Jose, San Francisco and northern California. He currently lives in Irvine, CA.

Friday, April 10, 2009

Mortgage Update April 10, 2009

The big news this week was Wells Fargo announcing that earnings a positive number for the 1st quarter of this year to the tune of 3 billion dollars. The was largely due to high mortgage origination volume and also some profit taking by the bank. The mortgage bonds improved big time this past quarter, and the lenders have dropped rates as a result. But at the same time they are taking fatter profit margins per deal because the demand for loans is so high, they can price in more profit per deal and still have more than enough business. Additionally, a major reason that earnings were higher for them this past quarter is due the change in “Mark to Market” accounting earlier this month. I think we will see a positive trend here with other banks major US Banks as a result of the change in Mark to Market accounting. The bank also went on to say that the Wachovia acquisition is exceeding expectations.

In other news, Initial Jobless Claims were reported at 654,000, still a bad number but better than expectations. The Bank of England left their benchmark interest rate steady at a record low of 0.5% today and said it will continue to buy government bonds in an attempt to keep the UK from falling into a deeper recession. This is more good news for the global financial system.

The market is closed today for Good Friday. We’ll be around this weekend. Gave a good one!

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Bay Area Commercial & Residential Invesment Real Estate Team

Mario Pinedo, CCIM - Commercial, Residential & Investment Realtor since 1991. Mario has been advising clients in the purchase of their home, rental properties, investment and commercial properties. He brings deep knowledge of what to buy, where to buy, how to buy and when to buy. Please ask him for his advice on your next real estate transaction. Mario is a real estate Broker and provides residential & commercial sales, leasing and lending services.

Mike Priolo - Commercial Landlord and Tenant Representative for Retail, Industrial and Office space throughout the San Francisco Bay Area. Mike has extensive knowledge throughout the industry with previous employment as a commercial real estate researcher, supporting a residential developer and processing commercial loans.

Hana Yang - Commercial and Residential investment knowledge having participated directly in projects in San Jose and Los Angeles. Projects include new installations of laundry business and single tenant NNN school facility.